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West China Cement

DB:WFG1
Snowflake Description

Flawless balance sheet, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WFG1
DB
HK$7B
Market Cap
  1. Home
  2. DE
  3. Materials
Company description

West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in the People’s Republic of China. The last earnings update was 7 days ago. More info.


Add to Portfolio Compare Print
  • West China Cement has significant price volatility in the past 3 months.
WFG1 Share Price and Events
7 Day Returns
11.5%
DB:WFG1
6.6%
Europe Basic Materials
2.1%
DE Market
1 Year Returns
22.9%
DB:WFG1
-26.7%
Europe Basic Materials
-16.6%
DE Market
WFG1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
West China Cement (WFG1) 11.5% 0.7% 1.4% 22.9% 12.4% -15.7%
Europe Basic Materials 6.6% -18.2% -32.2% -26.7% -36.7% -34%
DE Market 2.1% -12.6% -22.9% -16.6% -21.9% -27.8%
1 Year Return vs Industry and Market
  • WFG1 outperformed the Basic Materials industry which returned -26.7% over the past year.
  • WFG1 outperformed the Market in Germany which returned -16.6% over the past year.
Price Volatility
WFG1
Industry
5yr Volatility vs Market

Value

 Is West China Cement undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of West China Cement to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for West China Cement.

DB:WFG1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:WFG1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.3%
Basic Materials Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.817 (1 + (1- 25%) (43.51%))
1.056
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.056 * 6.33%)
6.3%

Discounted Cash Flow Calculation for DB:WFG1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for West China Cement is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:WFG1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 6.3%)
2020 1,041.00 Analyst x1 979.33
2021 1,684.00 Analyst x1 1,490.39
2022 1,632.45 Est @ -3.06% 1,359.17
2023 1,595.55 Est @ -2.26% 1,249.75
2024 1,568.44 Est @ -1.7% 1,155.74
2025 1,547.96 Est @ -1.31% 1,073.07
2026 1,531.99 Est @ -1.03% 999.09
2027 1,519.14 Est @ -0.84% 932.02
2028 1,508.44 Est @ -0.7% 870.63
2029 1,499.24 Est @ -0.61% 814.06
Present value of next 10 years cash flows CN¥10,923.00
DB:WFG1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,499.24 × (1 + -0.39%) ÷ (6.3% – -0.39%)
CN¥22,332.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥22,332.24 ÷ (1 + 6.3%)10
CN¥12,125.96
DB:WFG1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥10,923.00 + CN¥12,125.96
CN¥23,048.96
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥23,048.96 / 5,435.13
CN¥4.24
DB:WFG1 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:2233)
1.1
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥4.24 x 1.1
HK$4.67
Non-primary Listing Adjustment Factor 1 share in DB:WFG1 represents 0.10985x of SEHK:2233
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.10985x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 4.67 x 0.10985
€0.51
Value per share (EUR) From above. €0.51
Current discount Discount to share price of €0.15
= -1 x (€0.15 - €0.51) / €0.51
71.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price West China Cement is available for.
Intrinsic value
>50%
Share price is €0.145 vs Future cash flow value of €0.51258
Current Discount Checks
For West China Cement to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • West China Cement's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • West China Cement's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for West China Cement's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are West China Cement's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:WFG1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CNY CN¥0.33
SEHK:2233 Share Price ** SEHK (2020-04-07) in HKD HK$1.32
SEHK:2233 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.909 CN¥1.2
Europe Basic Materials Industry PE Ratio Median Figure of 33 Publicly-Listed Basic Materials Companies 9.52x
Germany Market PE Ratio Median Figure of 402 Publicly-Listed Companies 16.83x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of West China Cement.

DB:WFG1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2233 Share Price ÷ EPS (both in CNY)

= 1.2 ÷ 0.33

3.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • West China Cement is good value based on earnings compared to the Europe Basic Materials industry average.
  • West China Cement is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does West China Cement's expected growth come at a high price?
Raw Data
DB:WFG1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-1.2%per year
Europe Basic Materials Industry PEG Ratio Median Figure of 17 Publicly-Listed Basic Materials Companies 1.67x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:WFG1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.62x ÷ -1.2%

-2.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • West China Cement earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on West China Cement's assets?
Raw Data
DB:WFG1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CNY CN¥1.67
SEHK:2233 Share Price * SEHK (2020-04-07) in HKD HK$1.32
SEHK:2233 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.909 CN¥1.2
Europe Basic Materials Industry PB Ratio Median Figure of 39 Publicly-Listed Basic Materials Companies 0.85x
Germany Market PB Ratio Median Figure of 573 Publicly-Listed Companies 1.45x
DB:WFG1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2233 Share Price ÷ Book Value per Share (both in CNY)

= 1.2 ÷ 1.67

0.72x

* Primary Listing of West China Cement.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • West China Cement is good value based on assets compared to the Europe Basic Materials industry average.
X
Value checks
We assess West China Cement's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Basic Materials industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Basic Materials industry average (and greater than 0)? (1 check)
  5. West China Cement has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is West China Cement expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is West China Cement expected to grow at an attractive rate?
  • West China Cement's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • West China Cement's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • West China Cement's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:WFG1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:WFG1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -1.2%
DB:WFG1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -1.4%
Europe Basic Materials Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Europe Basic Materials Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:WFG1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:WFG1 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 6,822 1,803 2
2021-12-31 7,210 2,465 1,680 3
2020-12-31 6,989 2,241 1,808 2
2020-04-07
DB:WFG1 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-12-31 7,247 1,801
2019-09-30 6,934 1,554
2019-06-30 6,620 2,987 1,306
2019-03-31 6,266 2,745 1,233
2018-12-31 5,912 2,503 1,159
2018-09-30 5,581 2,377 1,149
2018-06-30 5,250 2,251 1,139
2018-03-31 5,005 2,010 925
2017-12-31 4,760 1,770 711
2017-09-30 4,481 1,601 526
2017-06-30 4,202 1,433 342
2017-03-31 3,961 1,373 176

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • West China Cement's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • West China Cement's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:WFG1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from West China Cement Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WFG1 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.33 0.33 0.33 1.00
2021-12-31 0.31 0.34 0.28 2.00
2020-12-31 0.33 0.33 0.33 1.00
2020-04-07
DB:WFG1 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-12-31 0.33
2019-09-30 0.29
2019-06-30 0.24
2019-03-31 0.23
2018-12-31 0.21
2018-09-30 0.21
2018-06-30 0.21
2018-03-31 0.17
2017-12-31 0.13
2017-09-30 0.10
2017-06-30 0.06
2017-03-31 0.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • West China Cement is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess West China Cement's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
West China Cement has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has West China Cement performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare West China Cement's growth in the last year to its industry (Basic Materials).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • West China Cement has delivered over 20% year on year earnings growth in the past 5 years.
  • West China Cement's 1-year earnings growth is less than its 5-year average (55.4% vs 64.5%)
  • West China Cement's earnings growth has exceeded the Europe Basic Materials industry average in the past year (55.4% vs 20.8%).
Earnings and Revenue History
West China Cement's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from West China Cement Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WFG1 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 7,247.39 1,801.28 447.22
2019-09-30 6,933.91 1,553.75 443.59
2019-06-30 6,620.44 1,306.21 439.96
2019-03-31 6,266.09 1,232.83 413.34
2018-12-31 5,911.74 1,159.45 386.72
2018-09-30 5,580.89 1,149.47 359.01
2018-06-30 5,250.04 1,139.49 331.29
2018-03-31 5,005.04 925.16 327.02
2017-12-31 4,760.04 710.84 322.75
2017-09-30 4,481.11 526.36 312.85
2017-06-30 4,202.17 341.87 302.94
2017-03-31 3,960.73 176.10 293.82
2016-12-31 3,719.28 10.32 284.70
2016-09-30 3,579.18 -207.41 298.32
2016-06-30 3,439.09 -425.13 311.95
2016-03-31 3,470.01 -367.17 312.76
2015-12-31 3,500.93 -309.21 313.58
2015-09-30 3,538.74 -215.54 299.91
2015-06-30 3,576.56 -121.87 286.23
2015-03-31 3,729.97 -42.98 290.15
2014-12-31 3,883.39 35.90 294.07
2014-09-30 4,040.73 203.12 286.55
2014-06-30 4,198.07 370.34 279.04
2014-03-31 4,182.96 374.33 278.81
2013-12-31 4,167.84 378.32 278.58
2013-09-30 4,034.64 381.47 272.16
2013-06-30 3,901.44 384.61 265.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • West China Cement has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • West China Cement used its assets more efficiently than the Europe Basic Materials industry average last year based on Return on Assets.
  • West China Cement has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess West China Cement's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Basic Materials industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
West China Cement has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is West China Cement's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up West China Cement's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • West China Cement is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • West China Cement's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of West China Cement's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from West China Cement Company Filings, last reported 3 months ago.

DB:WFG1 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 9,225.66 2,836.69 869.56
2019-09-30 9,225.66 2,836.69 869.56
2019-06-30 8,382.68 2,789.65 1,074.55
2019-03-31 8,382.68 2,789.65 1,074.55
2018-12-31 7,598.96 3,051.57 886.05
2018-09-30 7,598.96 3,051.57 886.05
2018-06-30 7,151.04 3,479.45 1,418.00
2018-03-31 7,151.04 3,479.45 1,418.00
2017-12-31 6,628.71 3,740.06 1,375.35
2017-09-30 6,628.71 3,740.06 1,375.35
2017-06-30 6,142.15 3,863.00 1,524.85
2017-03-31 6,142.15 3,863.00 1,524.85
2016-12-31 5,913.36 4,013.04 1,258.67
2016-09-30 5,913.36 4,013.04 1,258.67
2016-06-30 5,780.89 3,907.37 766.53
2016-03-31 5,780.89 3,907.37 766.53
2015-12-31 5,903.90 3,903.94 707.95
2015-09-30 5,903.90 3,903.94 707.95
2015-06-30 6,207.18 4,061.99 1,595.22
2015-03-31 6,207.18 4,061.99 1,595.22
2014-12-31 5,016.50 4,033.01 495.61
2014-09-30 5,016.50 4,033.01 495.61
2014-06-30 5,138.10 4,058.19 615.00
2014-03-31 5,138.10 4,058.19 615.00
2013-12-31 5,085.26 3,917.07 506.59
2013-09-30 5,085.26 3,917.07 506.59
2013-06-30 4,926.97 4,008.75 404.27
  • West China Cement's level of debt (30.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (80.2% vs 30.7% today).
  • Debt is well covered by operating cash flow (105.3%, greater than 20% of total debt).
  • West China Cement earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess West China Cement's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. West China Cement has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is West China Cement's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.25%
Current annual income from West China Cement dividends. Estimated to be 9.41% next year.
If you bought €2,000 of West China Cement shares you are expected to receive €165 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • West China Cement's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.67%).
  • West China Cement's dividend is above the markets top 25% of dividend payers in Germany (4.71%).
Upcoming dividend payment

Purchase West China Cement before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:WFG1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Europe Basic Materials Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 314 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:WFG1 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.14 2.00
2021-12-31 0.10 3.00
2020-12-31 0.12 2.00
2020-04-07
DB:WFG1 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2020-03-31 0.099 8.651
2019-09-26 0.036 3.159
2019-08-12 0.036 2.995
2019-03-18 0.028 2.796
2018-08-13 0.024 2.267
2018-07-17 0.026 2.271
2016-09-23 0.000 0.000
2016-08-15 0.000 0.000
2016-04-12 0.000 0.000
2016-03-14 0.000 0.000
2015-04-24 0.002 0.174
2014-05-30 0.020 2.921
2013-05-31 0.020 2.443
2012-09-11 0.000 0.000
2012-08-16 0.000 0.000
2012-03-15 0.034 2.676
2011-08-18 0.040 3.352
2011-05-18 0.015 0.708

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • West China Cement has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but West China Cement only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of West China Cement's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess West China Cement's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can West China Cement afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. West China Cement has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of West China Cement's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Weiping Ma
COMPENSATION CN¥3,778,000
AGE 57
TENURE AS CEO 5.2 years
CEO Bio

Dr. Ma Weiping has been the Chief Executive Officer of West China Cement Limited since February 5, 2015. Dr. Ma served as Managing Director of Shaanxi Fuping Cement Co., Ltd. Dr. Ma has over 20 years of management and technical experience in the building materials industry in both the United States of America and China. From 1996 to 2002, he served as a Senior Process Engineer and Project Manager for Holcim in Michigan, United States. From 2002 to 2005, Dr. Ma served as a Vice President of Marketing and Sales at Lafarge (China) in Beijing and for Lafarge Shuion Cement from 2005 to 2008. From 2008 to 2009, he served as a General Manager and Vice President for Lafarge A&C in Chongqing. Dr. Ma has been an Executive Director of West China Cement Limited since June 18, 2012. Dr. Ma has a Bachelor's Degree in Inorganic and Non-Metallic Materials from Tongji University, Shanghai in 1982, a Master's Degree in Solid State Science and a Ph.D. in Material Science and Engineering from Pennsylvania State University in 1991 and 1994 respectively. Dr. Ma also obtained a Master of Business Administration in Integration Management from Michigan State University in 2002.

CEO Compensation
  • Weiping's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Weiping's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the West China Cement management team in years:

5.2
Average Tenure
49
Average Age
  • The average tenure for the West China Cement management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jimin Zhang

TITLE
Founder & Chairman
COMPENSATION
CN¥3M
AGE
64

Weiping Ma

TITLE
CEO & Executive Director
COMPENSATION
CN¥4M
AGE
57
TENURE
5.2 yrs

Yufeng Chu

TITLE
Chief Financial Officer
AGE
40
TENURE
0.3 yrs

King Sau Chan

TITLE
Financial Controller & Company Secretary
AGE
41
TENURE
7.8 yrs
Board of Directors Tenure

Average tenure and age of the West China Cement board of directors in years:

8.8
Average Tenure
57
Average Age
  • The tenure for the West China Cement board of directors is about average.
Board of Directors

Weiping Ma

TITLE
CEO & Executive Director
COMPENSATION
CN¥4M
AGE
57
TENURE
7.8 yrs

Kenny Tam

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥381K
AGE
70
TENURE
9.8 yrs

Jimin Zhang

TITLE
Founder & Chairman
COMPENSATION
CN¥3M
AGE
64
TENURE
9.8 yrs

Conway Lee

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥381K
AGE
65
TENURE
9.8 yrs

Zhaoyang Ma

TITLE
Non-Executive Director
COMPENSATION
CN¥381K
AGE
50
TENURE
9.8 yrs

Yan Liu

TITLE
Non-Executive Director
COMPENSATION
CN¥342K
AGE
53
TENURE
4.8 yrs

Changhong Fan

TITLE
Non-Executive Director
AGE
53
TENURE
0.8 yrs

Dong Zhu

TITLE
Independent Non-Executive Director
AGE
57
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
16. Jan 20 Sell FIL Limited Company 13. Jan 20 13. Jan 20 -4,902,000 €0.16 €-793,625
11. Nov 19 Buy FIL Limited Company 06. Nov 19 06. Nov 19 1,172,000 €0.15 €176,102
23. Aug 19 Sell FIL Limited Company 20. Aug 19 20. Aug 19 -8,603,119 €0.16 €-1,389,333
29. May 19 Buy FIL Limited Company 24. May 19 24. May 19 3,954,000 €0.12 €462,330
09. Apr 19 Buy GIC Pte. Ltd. Company 08. Apr 19 08. Apr 19 2,404,000 €0.13 €303,927
X
Management checks
We assess West China Cement's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. West China Cement has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in the People’s Republic of China. The company sells its products under the Yao Bai and Yaobaishuini names. Its cement products are used in the construction of infrastructure projects, such as highways, railways, bridges, hydroelectric power stations, and water conservancy and water transfer projects, as well as residential buildings. The company also engages in financial leasing and transport businesses. West China Cement Limited was incorporated in 1991 and is headquartered in Xi'an, the People’s Republic of China.

Details
Name: West China Cement Limited
WFG1
Exchange: DB
Founded: 1991
HK$849,789,849
5,435,132,820
Website: http://www.westchinacement.com
Address: West China Cement Limited
Yaobai R&D Training Center,
No. 336 4th Shenzhou Road,
Xi'an,
Shaanxi Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2233 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 04. Dec 2006
OTCPK WCHN.F Ordinary Shares Pink Sheets LLC US USD 04. Dec 2006
DB WFG1 Ordinary Shares Deutsche Boerse AG DE EUR 04. Dec 2006
SHSC 2233 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 04. Dec 2006
SZSC 2233 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 04. Dec 2006
Number of employees
Current staff
Staff numbers
5,750
West China Cement employees.
Industry
Construction Materials
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 23:16
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/03/31
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.